Notes to the Financial Statements For the financial year ended 31 December 2025 Notes to the Financial Statements For the financial year ended 31 December 2025 8. INTANGIBLE ASSETS AND GOODWILL Goodwill Management contracts Total $’000 $’000 $’000 Group Cost At 1 January 2024 63,155 26,040 89,195 Additions – – – At 31 December 2024 63,155 26,040 89,195 Additions 3,036 – 3,036 At 31 December 2025 66,191 26,040 92,231 Accumulated amortisation At 1 January 2024 – 23,870 23,870 Amortisation charge for the year – 2,170 2,170 At 31 December 2024 – 26,040 26,040 Amortisation charge for the year – – – At 31 December 2025 – 26,040 26,040 Carrying amounts At 1 January 2024 63,155 2,170 65,325 At 31 December 2024 63,155 – 63,155 At 31 December 2025 66,191 – 66,191 The amortisation of management contracts is included in administrative expenses in the statement of profit or loss. On 15 December 2025, the Group acquired an additional 60.0% equity interest in its former joint venture, Tianjin Eber Perennial Hospital Co., Ltd. (“Eber”). Consequently, Eber became a subsidiary of the Group. The effect of acquisition of Eber resulted in additions to property, plant and equipment and net cash outflows of $19.9 million (Note 5) and $12.6 million respectively. The Group has not completed its purchase price allocation exercise for acquisition of Eber as at 31 December 2025. The provisional goodwill of $3.0 million represents the difference between the purchase consideration and the net carrying amount of assets acquired and liabilities assumed. When the purchase price allocation is completed, adjustments will be made to the provisional amounts of assets and liabilities, including the provisional goodwill. Comparative information will be revised as required. Impairment testing for CGUs containing goodwill For the purposes of impairment testing, goodwill has been allocated to the Group’s CGU as follows: Group 2025 2024 $’000 $’000 Management business 63,155 63,155 The recoverable amount of this CGU was based on value in use. Value in use was determined by discounting future cash flows to be generated from the continuing use of the CGU based on the most recent forecasts approved by management for the next five years. 8. INTANGIBLE ASSETS AND GOODWILL (continued) Impairment testing for CGUs containing goodwill (continued) The key assumptions used in the estimation of the recoverable amount are set out below. Group 2025 2024 % % Discount rate (post-tax) 10.2 – 11.5 11.7 – 13.0 Discount rate (pre-tax) 12.3 – 15.3 14.1 – 17.3 Terminal value growth rate 3.0 3.0 Budgeted EBITDA growth rate 3.0 3.0 The discount rate used was post-tax and reflected specific risks relating to the management business segment. The cash flow projections included specific estimates for the years and terminal growth rate thereafter. The terminal growth rate was determined based on management’s estimate of the long-term growth rate, consistent with the assumptions that a market participant would make. Budgeted EBITDA was estimated based on past experience, adjusted for the anticipated revenue growth. Revenue growth was projected based on the average growth levels experienced over the past five years and the estimated revenue growth for the next five years. As at 31 December 2025, the recoverable amount of the CGU exceeded its carrying amount by $3.6 million (2024: $5.2 million). Management has identified that a reasonably possible change in a key assumption could cause the carrying amount to exceed the recoverable amount. The following table shows the amount by which this assumption would need to change for the estimated recoverable amount to be equal to the carrying amount. Group 2025 2024 % % Change required for carrying amount to equal the recoverable amount Increase in discount rate (post-tax) 1.5 0.6 Increase in discount rate (pre-tax) 1.8 0.8 OVERVIEW PERFORMANCE SUSTAINABILITY FINANCIALS APPENDIX 205 204 PERENNIAL HOLDINGS PRIVATE LIMITED ANNUAL REPORT 2025
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